The cellblock9 engine has been in development for some time now.
Here are a couple of things we have added:

New lighting + FX model:
For lighting we now use deferred shading, this technique allows us to give each energy-ball it's own light-source.
The new system also allows for post-processing effects such as: black outlines, shock-wave effects.

Moving water:
Water with geometry that responds to physics :)

New scripting possibility's:
The move system and scripting engine have received more options.

Less hard-coded behavior.
1 by one we are removing all hard-coded game-play code and replacing it with moves/scripts that can be defined outside of the engine. This will allow for other games to be developed on the LBZ engine! :)

Normal maps, specular maps will be... basicly the renderer is already doing both but the models/levels do not have a way to add them yet ;)
Development has been slow because of my very beautifull (thus distracting) girlfriend. :)